Cincinnati Financial – An Overview

Cincinnati Financial sells car insurance policies across the United States. Yes, Cincinnati sells auto insurance throughout the city of Cincinnati and the state of Ohio, but the company also underwrites policies in 30 other states. Cincinnati Financial has provided various insurance products for over 70 years. Is the Cincinnati, Ohio-based company the right option for your car insurance needs? Keep reading to find out.

Cincinnati Financial History

Cincinnati Financial Corporation was founded in Cincinnati, Ohio in 1950. Since launch, the company’s main business has been property and casualty insurance, including auto insurance and homeowner’s insurance. Cincinnati Financial was founded by four agents, including brothers John Jack Schiff and Robert Cleveland Schiff.

cincinnati financial auto insurance reviewToday, the company holds about a 1% market share in the domestic property and casualty insurance market, making it the 20th largest insurance company by market share in the United States. Cincinnati Financial also sells life and disability income insurance through the Cincinnati Life Insurance Company.

Cincinnati Financial has also expanded globally. In February 2019, Cincinnati Financial acquired an international specialty underwriter called MSP Underwriting. That London-based company was reorganized as Cincinnati Global.

Today, Cincinnati Financial is headquartered in Fairfield, Ohio, approximately 25 miles north of Cincinnati. The company employs approximately 5,000 people across the United States, including about 2,000 insurance agents.

Cincinnati Insurance Rankings

Cincinnati isn’t one of the largest insurance companies in the United States, which is why it doesn’t appear on the annual J.D. Power auto claims satisfaction rankings. However, Cincinnati is one of the largest insurance companies in J.D. Power’s North Central subregion, which is why it appeared on the 2019 rankings for that region.

Overall, Cincinnati was average compared to most of its competitors:

Overall Satisfaction: 3 out of 5

Policy Offerings: 3 out of 5

Price: 3 out of 5

Billing Process and Policy Information: 3 out of 5

Interaction: 4 out of 5

Claims: 5 out of 5

Cincinnati wasn’t among the best car insurance companies in the North Central subregion, but it also was not among the worst. The company also received the highest possible score for its claims process. Only USAA and Westfield (both of which received a perfect 5/5 score overall) also received a 5/5 rating for their claims processes.

We also assess insurance companies based on their financial strength. In its 2019 rankings, A.M. Best gave Cincinnati Financial a rating of A+ or ‘Superior’. Only about 12% of property and casualty insurance companies receive an A+ or A++ rating. This strong rating indicates that Cincinnati Financial should have no trouble covering its liabilities or paying out claims in the future.

We can also judge an insurance company based on the number of complaints received by the NAIC. Cincinnati Financial has an NAIC complaint ratio of 0.26, which is significantly lower than the nationwide median of 1.00.

What Makes Cincinnati Financial Unique?

Cincinnati Financial has several features that make it unique:

Only Available in 30 States: Cincinnati offers various insurance products in 30+ states across the United States. Unlike some of Cincinnati’s larger competitors, the company is not available nationwide.

Multiple Insurance Products: Cincinnati sells more than just car insurance. The company also sells life insurance, home insurance, and a wide range of other property insurance policies.

Strong Claims Process Ratings: In the latest J.D. Power ratings, Cincinnati Financial had the third-highest claims servicing rating in the North Central region, earning a perfect 5/5 score. If a smooth and hassle-free claims process is important to you, then Cincinnati Financial may be worth a look.

Few Complaints: Cincinnati Financial has few complaints compared to other insurance companies of its size. The company’s NAIC complaint ratio is just 0.26, which is significantly below the national median of 1.00. The NAIC received just 15 complaints from Cincinnati Financial customers in 2017.

Umbrella Coverage: Umbrella coverage is available to protect drivers against additional liabilities incurred after a car accident – like expensive lawsuits.

Is Cincinnati Financial a Good Insurance Company? Our Review

Cincinnati Financial isn’t one of the top 20 largest insurance companies in the United States. However, the company currently serves about 1% of the property and casualty insurance market in the United States with customers in 30+ states nationwide.

Customer reviews for Cincinnati Financial auto insurance online range from mixed to good. Cincinnati Financial has decent ratings from J.D. Power, for example, where it received a perfect 5-star score in terms of claims servicing. The company’s overall score, however, was just 3 out of 5, placing it at the low to middle end of the pack for the North Central subregion.

Online reviews for Cincinnati range from positive to average. Some claim that the company handled their claims fairly and efficiently. Others claim they had a bad claims process. Overall, there are more positive reviews for Cincinnati Financial online than negative reviews.

Pricing can also vary widely. Cincinnati Financial offers competitive car insurance premiums to some drivers but not others. Some drivers claim they got a great deal with Cincinnati Financial, while others – particularly young drivers – complained about high prices.

Cincinnati Financial Auto Insurance Policies and Products

What makes Cincinnati Financial’s auto insurance products different from its competitors? Here are some of the things that make Cincinnati auto insurance unique:

Auto Plus: Cincinnati Financial’s premium auto insurance is bundled under the Auto Plus program, which includes a range of extras. Auto Plus policies include towing and labor, lock replacement, and child safety seat replacement, for example, among other bonus coverage options.

Gap Coverage: Cincinnati Financial offers gap coverage. You can pay higher insurance premiums today to cover the ‘gap’ between the value of your car and the price you paid.

Replacement Cost Plus: The company’s Replacement Cost Plus program is designed for those who just purchased a new car. If you total your new car and are covered under Replacement Cost Plus, then you will receive a new car straight off the dealer’s lot or the full balance of your remaining car loan.

Antique or Collector Car Insurance: Cincinnati offers antique or collector car insurance, allowing you to cover these vehicles under your same car insurance policy. In the event of a covered total loss, you will receive a settlement based on the value specified in your policy, and depreciation does not reduce the amount of your settlement (similar to other agreed value car insurance policies for classic or antique cars).

Final Word

Cincinnati Financial is smaller than many of its competitors. However, the company has a strong reputation in its 30+ covered markets, and they offer particularly strong claims servicing in the North Central subregion, according to the latest J.D. Power rankings.

If you live in a state where Cincinnati Financial car insurance is available, then consider requesting a quote to determine if they match your insurance needs and budget.

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